Lawsuit blow for De Beers

DE BEERS' bid to shed its image as a cartel has been dealt another blow with the filing of a second US anti-trust suit against the world's biggest diamond miner.

The move could have severe consequences for De Beers' hopes of being allowed to operate freely in the US, the world's largest market for diamond jewellery, and could also have ramifications for the company's retailing joint venture with LVMH, the French luxury goods house.

De Beers refused to comment on the legal action, saying it had only just learned of the suit. However, Anglo American, which is part of an $18bn (£12.4m) takeover bid for De Beers, is sure to use the case as further evidence of why its offer should be accepted by the South African company's shareholders.

Anglo, which is bidding for De Beers in conjunction with South Africa's Oppenheimer family, increased its combined paper and cash offer by $800m on Thursday.